Tobacco

Altria, RJR Join Price Hike

Philip Morris, Reynolds cigarettes to rise 8 cents per pack, following Lorillard
RICHMOND, Va. & WINSTON-SALEM, N.C -- Both Altria Group Inc. and Reynolds American Inc. have confirmed an eight-cents-per-pack price increase on all Philip Morris USA and R.J. Reynolds cigarette brands. The PM USA increase is effective with shipments on December 6, and the RJR increase kicks in the next day.

The announcements follow on the heels of a six-cents-per-pack price increase from Greensboro, N.C.-based Lorillard, as reported earlier this week. (Click here for previous CSP Daily News coverage.)

"The company periodically evaluates its pricing strategy, and how to most effectively manage its business against marketplace dynamics," Altria spokesperson Greg Mathe told CSP Daily News. "So this pricing increase is a result of that evaluation."

PM USA cigarette brands include Marlboro, Alpine, Basic, Benson & Hedges, Bristol, Cambridge, Chesterfield, Commander, Dave's, English Ovals, Lark, L&M, Merit, Parliament, Players, Saratoga and Virginia Slims.

The increase equates to roughly a 2.2% increase on Marlboro, according to a report from tobacco analyst Nik Modi, UBS Securities LLC, New York.

Altria, Richmond, Va., had increased prices in May of this year, and Marlboro continued to deliver strong retail share results. Marlboro's retail share for the three- and nine-month periods ended Sept. 30 increased 0.7 and 0.8 share points, respectively, versus the prior-year periods.

R.J. Reynolds Tobacco Co., Winston-Salem, N.C., is the second-largest U.S. tobacco company. The company's brands include five of the 10 best-selling cigarettes in the U.S.: Camel, Pall Mall, Winston, Doral and Kool.

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